NZD/USD struggles to build on intraday recovery beyond 0.6000, US macro data in focus

• NZD/USD attracts some dip-buyers following the previous day’s post-RBNZ downfall.
• Dovish Fed expectations and a positive risk tone undermine the USD, lending support.
• Traders now look to the US macro data and Fed speak for short-term opportunities.

The NZD/USD pair stages a modest recovery after touching a fresh weekly low earlier this Thursday and retakes the 0.6000 psychological mark during the first half of the European session. Spot prices, for now, seem to have stalled the previous day's dovish Reserve Bank of New Zealand (RBNZ)-inspired retracement slide from the 0.6085 region, or a four-week peak, and draw support from subdued US Dollar (USD) price action.

The US Consumer Price Index (CPI) report released on Wednesday provided further evidence of cooling inflationary pressures and reaffirmed market bets for an imminent start of the Federal Reserve's (Fed) rate-cutting cycle. This, in turn, keeps the USD bulls on the defensive and lends some support to the NZD/USD pair amid a generally positive tone around the equity markets, which tends to underpin demand for the risk-sensitive Kiwi. That said, any meaningful appreciating move seems elusive in the wake of the RBNZ's dovish tilt.

The central bank cited the recent progress towards meeting the annual inflation target and weak domestic economic growth behind the surprise decision to cut the Official Cash Rate (OCR) for the first time since March 2020. The RBNZ also indicated more cuts over the coming months, which, along with concerns about an economic downturn in China, could undermine antipodean currencies, including the New Zealand Dollar (NZD). This, in turn, warrants some caution before placing fresh bullish bets around the NZD/USD pair. 

Moving ahead, investors now look forward to the US economic docket – featuring the release of monthly Retail Sales figures, the usual Weekly Initial Jobless Claims, the Empire State Manufacturing Index and the Philly Fed Manufacturing Index. This, along with speeches by influential FOMC members, will play a key role in driving the USD demand and provide a fresh impetus to the NZD/USD pair later during the early North American session. Apart from this, the broader risk sentiment should contribute to producing short-term trading opportunities.